Rate codes are configured to represent the various types of compensation an Employee or Contractor receives for work during a specific period. Each rate code can have different taxability, calculations, and other factors. In Arcoro Payroll, rate codes are categorized as either Hourly or Non-Hourly.

• For hourly rate codes, hours must be associated with each earning type (e.g., Regular, Sick, PTO).
• For non-hourly rate codes, hours cannot be entered. Instead, a flat dollar amount should be provided (e.g., Bonus, Commission).

Memo hours (hours without a corresponding amount) cannot be stored in Arcoro Payroll, and recurring earnings are also not supported within the system.

Rate Codes Menu

The rate codes menu will show a list of your rate codes.

The menu will present the following columns:

• Name
• Type
• Sub Type
• Base Rate toggle
• Active toggle

Creating a Rate Code in Payroll

1. Expand Setup and click Rate Codes.
   
2. Click New Rate Code.
   
3. Set up the rate code:
   
   • Name - Populate the rate code name. This is the information that will appear on payroll reports and the employee's paystub.
     • Please Note: If you are using ExakTime Time Off, the Rate Code name must match the Time Off Plan for hours to sync from ExakTime to Payroll successfully.
     • Important: Rate Codes names cannot be changed once created. 
   • Type - Select the Type:
     • Hourly: Hours must be attached to each earning: Regular, Sick, PTO, etc. 
     • Non-Hourly: Hours cannot be entered. A flat dollar amount will need to be entered: Bonus, Commission, etc.
   • Sub Type - The sub type selected will designate the rate code’s taxability
     • Hover over the question mark icon for help text
   • Base Rate - Specify if the rate is the base rate.
4. Click Save when finished.

Next Steps for Hourly Rate Code Types

• If you created a Non–Hourly Rate Code type, you completed the process. The rate code can be applied on a payroll run.
• If you created an Hourly Rate Code type, there are additional steps needed to ensure the rate code can be paid on payroll.

1. Add Rate Code to Employees - If an hourly rate code type is created, the employee's hourly rate must be added to the Compensation section of their employee record in Payroll. This ensures that the correct hourly rate is applied when calculating their earnings.
   • If you are using CoreHR, compensation should be entered in CoreHR and synced to Payroll.
2. Update Rate Code Mapping (if applicable). Once the rate code is saved, the following subtypes will be available in ExakTime to complete the Rate Code Mapping section:
   • Hourly
   • Overtime
   • Double Overtime
   • Paid Holiday

Important: The "Paid Time Off" rate code subtype will not sync to ExakTime. However, if you are using ExakTime Time Off, to ensure successful synchronization of time off hours from ExakTime to Payroll, the Rate Code name must match the Time Off Plan name. Rate Code Mapping is not required for this process.